Good morning!
Is there relief, resignation? Summer laziness or delighted markets now that the United States and the European Union have reached an agreement on taxes? Today we try to read the tea leaves in this blog and to display the market reactions.
The United States will levy 15 percent on import from the European Union. Separate agreements apply to a few categories of goods. Here you can read the first analysis of EU correspondent Rik Rutten.
In Stockholm today, negotiations between China and the US about their trade relations and mutual taxes. It is the third round of conversation and the main goal seems to be the previously agreed ceasefire. When Trump announced towering levies, Xi Jinping did it back just as hard, followed by discussions and both countries suspended the taxes.
The fact that China does not let itself be ringed gives the negotiations a different dynamic than with more humble (and smaller) parties. This can be deduced from one Message today in the Ft. He reports that the US government ordered earlier this year to freeze limitations on the export of technology, to prevent Xi Jinping Trump from meeting. It is specifically about the coveted H20 chip of Nvidia, important in the AI race.
How difficult it is to measure the effect of taxes appears today in pharmacy. The large pharmacist chain Benu sounds the bell about a price increase that would be related to the taxes. The American drug manufacturer Bristol-Meeyers Squibb (BMS) increases the costs for a widely used blood thinner as of 1 August by 15 percent. The manufacturer refers to the levies, but a director of Benu suspects that more is going on, writes the FD. “BMS seems to want to cash maximum for the patent expiring within a year and a half.”